Correlation Between Cognios Large and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Cognios Large and Altegris Futures at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cognios Large and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognios Large Cap and Altegris Futures Evolution, you can compare the effects of market volatilities on Cognios Large and Altegris Futures and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cognios Large with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognios Large and Altegris Futures.
Diversification Opportunities for Cognios Large and Altegris Futures
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cognios and Altegris is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cognios Large Cap and Altegris Futures Evolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altegris Futures Evo and Cognios Large is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cognios Large Cap are associated (or correlated) with Altegris Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altegris Futures Evo has no effect on the direction of Cognios Large i.e., Cognios Large and Altegris Futures go up and down completely randomly.
Pair Corralation between Cognios Large and Altegris Futures
If you would invest 1,140 in Cognios Large Cap on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Cognios Large Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Cognios Large Cap vs. Altegris Futures Evolution
Performance |
| Timeline |
| Cognios Large Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Altegris Futures Evo |
Cognios Large and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognios Large and Altegris Futures
The main advantage of trading using opposite Cognios Large and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognios Large position performs unexpectedly, Altegris Futures can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altegris Futures will offset losses from the drop in Altegris Futures' long position.| Cognios Large vs. Cognios Market Neutral | Cognios Large vs. Schwartz Value Focused | Cognios Large vs. Palmer Square Income | Cognios Large vs. Fm Investments Large |
| Altegris Futures vs. Aqr Managed Futures | Altegris Futures vs. Pimco Trends Managed | Altegris Futures vs. Pimco Trends Managed | Altegris Futures vs. American Beacon Ahl |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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